Self-Employed Vehicles

jewels.p

If someone is self-employed and buys a second hand Van for £4,000 do they still have to use Depreciation Method to write off cost? I think they do but just wanted to double check incase this is only for vehicles for big amounts.

Thanks

stevo5678

Hi Jewels,

Yes they do as it makes no difference whether it is new or not. It is the cost your client pays that is relevant and then select a suitable dep'n policy. I would say something like 20-25% reducing balance as it's fairly close to the MV that way.

100% CA's available via AIA for tax, so you get the full tax relief in year one.

jewels.p

Thanks Stevo5678. With the second part you are meaning for all other Tools/Equipment arent you and not referring to the Van?:001_smile:

peaman

A van is classed as plant & equipment, so the 100% AIA can be claimed.

If they are just a sole trader and no balance sheet is being prepared (i.e. just an income & expenditure a/c), I wouldn't bother claiming the depreciation in the accounts.

jewels.p

Thanks peaman:001_smile: